Reductio ad absurdum done right.
The Upside of Income Inequality
By Gary S. Becker and Kevin M. Murphy
From the May/June 2007 Issue of American.com
For many, the solution to an increase in inequality is to make the tax structure more progressive—raise taxes on high-income households and reduce taxes on low-income households. While this may sound sensible, it is not. Would these same individuals advocate a tax on going to college and a subsidy for dropping out of high school in response to the increased importance of education? We think not. Yet shifting the tax structure has exactly this effect.